urbanest has secured a £151m loan from Nuveen Real Estate against urbanest Battersea – its purpose-built student accommodation (PBSA) asset.
It is a brand new operationally stabilised PBSA development close to the Battersea Power Station regeneration area in Central London and a stone’s throw from the new Northern Line extension serving it. It forms part of urbanest’s wider 4,645 bedroom portfolio in London’s Zone 1.
Having achieved practical completion ahead of occupation for the new academic year in September 2024, urbanest Battersea is pioneering in terms of its sustainability credentials. It recently achieved Passivhaus accreditation which makes it the largest Passivhaus building in the UK and the eighth largest in the world.
Rendering conventional heating systems unnecessary, the Passivhaus low-energy construction concept makes efficient use of the sun, internal energy sources and mechanical ventilation with heat recovery. This allows for space heating and cooling related energy savings of up to 90% compared with typical buildings and over 75% compared to average new builds. The building was also delivered to BREEAM Outstanding standard.
The property’s location provides residents easy access to all the amenities of the Battersea Power Station development, and the nearby tube station connects them directly to the multitude of university campuses across London comfortably within 30 minutes’ travel time.
“We are delighted to partner with Nuveen Real Estate for the refinancing of our newest asset, urbanest Battersea. The business has pushed sustainability boundaries far beyond anything seen in the UK PBSA sector to date, and we are immensely proud to have created a world-class sustainable student community in London where our student residents, University partners and our team can thrive.”
Vicky Skinner, CFO, urbanest
The asset comprises 853 bedrooms, and occupancy has been stabilised in the high 90% range in the first academic year since opening, reflecting a blend of nominations agreements and direct let beds. The student accommodation is split between three blocks, and onsite student amenities include a gym and bike storage facilities, whilst also benefitting from access to shared social and study spaces, a cinema room, a café and an enclosed roof terrace.
“The ongoing trend of student population growth combined with the structural undersupply of quality PBSA beds, particularly in Central London, continues to attract investor capital into this sector. Despite only opening in September last year, urbanest Battersea’s occupancy level demonstrates the demand for high-quality, well-located student accommodation in Central London. This facility provides an excellent opportunity to add further exposure to a much sought after asset class and we are proud to work alongside such a highly experienced sponsor specialising in the PSBA space.”
Caroline Pellmann, Senior Director, Nuveen Real Estate
